Paragon Mortgages' Parent Company Reports 21% Increase in Lending
The Paragon Group of Companies, the parent company of Paragon Mortgages, has today released its Q3 trading update for the period from 1 October 2015 to date.
The Group reported underlying operating profits of £109.9 million, up 12.1% on the same period last year (£98.0 million). Buy-to-let lending for the nine months to 30 June 2016 totalled £989.6 million, this is a 21.2% increase on the £816.5 million for the corresponding period in 2015.
As part of the Group’s continued diversification strategy, 45.7% of buy-to-let lending was funded through retail deposits, compared with 22.8% at 30 June 2015.
John Heron, Director of Paragon Mortgages, said...
During the last nine months we have grown our new lending compared to the same period last year, whilst maintaining our excellent credit quality. As expected new lending levels have slowed, as they have across the wider market, following the stamp duty changes and uncertainty in the run up to the referendum. Our pipeline at 30 June 2016 stood at £339.0 million, compared to £350.6 million at the start of the quarter, again given the current environment this is not unexpected. We continue to maintain our disciplined approach to pricing and credit. In January we took the early decision to raise our minimum affordability tests to reflect the future landlord tax relief changes. Paragon continues to see a wealth of opportunities in the buy-to-let sector. With tenant demand for quality, privately rented housing remaining high, private landlords will be the driving force behind trying to meeting this growing demand.